{"id":760341,"date":"2023-05-24T16:21:46","date_gmt":"2023-05-24T20:21:46","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/nutanix-reports-third-quarter-fiscal-2023-financial-results\/"},"modified":"2023-05-24T16:21:46","modified_gmt":"2023-05-24T20:21:46","slug":"nutanix-reports-third-quarter-fiscal-2023-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/nutanix-reports-third-quarter-fiscal-2023-financial-results\/","title":{"rendered":"Nutanix Reports Third Quarter Fiscal 2023 Financial Results"},"content":{"rendered":"

<\/p>\n

Nutanix Reports Third Quarter Fiscal 2023 Financial Results<\/b><\/p>\n

Delivers Outperformance Across All Fiscal Q3\u201923 Guided Metrics<\/i><\/p>\n

Completes Audit Committee Investigation and Files Form 10-Q for Fiscal Q2\u201923<\/i><\/p>\n

SAN JOSE, Calif.–(BUSINESS WIRE<\/a>)–Nutanix<\/a>, Inc. (NASDAQ: NTNX<\/a>), a leader in hybrid multicloud computing, today announced financial results<\/a> for its third quarter ended April 30, 2023.<\/p>\n

This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20230524005344\/en\/<\/a><\/p>\n

\n\u201cOur business performed well in the third quarter against an uncertain macro backdrop, as the value proposition of our cloud platform continued to resonate with customers,\u201d said Rajiv Ramaswami, President and CEO of Nutanix. \u201cWe are also pleased to have completed the Audit Committee investigation regarding third-party software usage and to have filed our Form 10-Q for our second quarter of fiscal 2023.\u201d<\/p>\n

\n\u201cOur third quarter results continued to demonstrate a good balance of growth and profitability, resulting in year-to-date ACV Billings growth exceeding 20%, combined with strong year-to-date free cash flow generation,\u201d said Rukmini Sivaraman, CFO of Nutanix. \u201cWe continue to execute on our growing base of subscription renewals and remain focused on sustainable, profitable growth.\u201d<\/p>\n

\nAdditionally, upon conclusion of its investigation related to third-party software usage, the Audit Committee determined that evaluation software from two software providers was used in a non-compliant manner over a multi-year period and that certain employees had concealed this non-compliant use of evaluation software in violation of the Company\u2019s code of business conduct and ethics and other policies.<\/p>\n

\nAs a result of the investigation, the Company also identified a material weakness in its internal control over financial reporting, which resulted in an immaterial understatement of operating expenses and accrued expenses and other current liabilities for prior periods beginning in August 2014. The Company has accounted for the estimated financial impact of this past non-compliant usage of software from these two vendors by recording cumulative estimated expenses of $11 million as of the second quarter of fiscal 2023, which represents an estimated amount of future payments for past non-compliant usage of software from these two vendors, accrued over a multi-year period. The Company has accordingly also corrected the prior period financials presented in the Form 10-Q for its second quarter of fiscal 2023 filed today.<\/p>\n

\nThe Company expects the incremental ongoing annualimpact to operating expenses of this third-party software usage to be approximately in the low-single-digit millions of dollars. The Company is also implementing, or plans on implementing, remedial measures, including remedial measures to address the material weakness and strengthen its overall internal control over financial reporting.<\/p>\n

\n

\nAdditional information, including the complete results for the second quarter of fiscal 2023 and information about the estimated financial impact and remedial measures related to the third-party software review, can be found in the Form 10-Q for the second quarter of fiscal 2023.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
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Third Quarter Fiscal 2023 Financial Summary<\/b><\/p>\n<\/td>\n<\/tr>\n

\n\n\n\u00a0<\/td>\n<\/tr>\n
\n

\n\u00a0<\/p>\n<\/td>\n

\n

Q3 FY\u201923<\/b><\/p>\n<\/td>\n

\n

Q3 FY\u201922*<\/b><\/p>\n<\/td>\n

\n

Y\/Y Change<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nAnnual Contract Value (ACV)1<\/sup><\/i> Billings<\/p>\n<\/td>\n

\n

\n$239.8 million<\/p>\n<\/td>\n

\n

\n$204.7 million<\/p>\n<\/td>\n

\n

\n17%<\/p>\n<\/td>\n<\/tr>\n

\n

\nAnnual Recurring Revenue (ARR)2<\/sup><\/p>\n<\/td>\n

\n

\n$1.47 billion<\/p>\n<\/td>\n

\n

\n$1.11 billion<\/p>\n<\/td>\n

\n

\n32%<\/p>\n<\/td>\n<\/tr>\n

\n

\nAverage Contract Term3<\/sup><\/i><\/p>\n<\/td>\n

\n

\n3.0 years<\/p>\n<\/td>\n

\n

\n3.2 years<\/p>\n<\/td>\n

\n

\n(0.2) year<\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenue4<\/sup><\/i><\/p>\n<\/td>\n

\n

\n$448.6 million<\/p>\n<\/td>\n

\n

\n$403.7 million<\/p>\n<\/td>\n

\n

\n11%<\/p>\n<\/td>\n<\/tr>\n

\n

\nGAAP Gross Margin<\/p>\n<\/td>\n

\n

\n81.4%<\/p>\n<\/td>\n

\n

\n80.2%<\/p>\n<\/td>\n

\n

\n120 bps<\/p>\n<\/td>\n<\/tr>\n

\n

\nNon-GAAP Gross Margin<\/p>\n<\/td>\n

\n

\n83.8%<\/p>\n<\/td>\n

\n

\n83.3%<\/p>\n<\/td>\n

\n

\n50 bps<\/p>\n<\/td>\n<\/tr>\n

\n

\nGAAP Operating Expenses<\/p>\n<\/td>\n

\n

\n$434.1 million<\/p>\n<\/td>\n

\n

\n$416.5 million<\/p>\n<\/td>\n

\n

\n4%<\/p>\n<\/td>\n<\/tr>\n

\n

\nNon-GAAP Operating Expenses<\/p>\n<\/td>\n

\n

\n$369.1 million<\/p>\n<\/td>\n

\n

\n$342.1 million<\/p>\n<\/td>\n

\n

\n8%<\/p>\n<\/td>\n<\/tr>\n

\n

\nGAAP Operating Loss<\/p>\n<\/td>\n

\n

\n$(68.9) million<\/p>\n<\/td>\n

\n

\n$(92.7) million<\/p>\n<\/td>\n

\n

\n$23.8 million<\/p>\n<\/td>\n<\/tr>\n

\n

\nNon-GAAP Operating Income (Loss)<\/p>\n<\/td>\n

\n

\n$7.0 million<\/p>\n<\/td>\n

\n

\n$(5.8) million<\/p>\n<\/td>\n

\n

\n$12.8 million<\/p>\n<\/td>\n<\/tr>\n

\n

\nGAAP Operating Margin<\/p>\n<\/td>\n

\n

\n(15.3)%<\/p>\n<\/td>\n

\n

\n(23.0)%<\/p>\n<\/td>\n

\n

\n7.7% pts<\/p>\n<\/td>\n<\/tr>\n

\n

\nNon-GAAP Operating Margin<\/p>\n<\/td>\n

\n

\n1.6%<\/p>\n<\/td>\n

\n

\n(1.4)%<\/p>\n<\/td>\n

\n

\n3.0% pts<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet Cash Provided by (Used in) Operating Activities<\/p>\n<\/td>\n

\n

\n$64.3 million<\/p>\n<\/td>\n

\n

\n$(3.2) million<\/p>\n<\/td>\n

\n

\n$67.5 million<\/p>\n<\/td>\n<\/tr>\n

\n

\nFree Cash Flow<\/p>\n<\/td>\n

\n

\n$42.5 million<\/p>\n<\/td>\n

\n

\n$(20.1) million<\/p>\n<\/td>\n

\n

\n$62.6 million<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

*<\/b>Q3 FY\u201922 results reflect the correction of an immaterial error in the reporting of expenses for software licenses and support. Reconciliation between the corrected Q3 FY\u201922 results and the Q3 FY\u201922 results as originally reported is provided in the tables of this press release.<\/p>\n

\nReconciliations between GAAP and non-GAAP financial measures and key performance measures, to the extent available, are provided in the tables of this press release.<\/p>\n

\n

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